9911796707
TMI Blog2010 (6) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... ual of interest” not relevant where statutory provision for levy of interest is under scrutiny. X X X X Extracts X X X X X X X X Extracts X X X X ..... B unless it could be established that atleast one of the ingredients pre scribed under the Section existed in the particular case on hand. It should be shown that the assessee indulged in collusion, fraud, wilful suppression of facts or the like with intention to evade payment of duty so as to attract the penal interest provided under Section 11AB. It is submitted that none of these ingredients was even alleged in any of the show-cause notices and, therefore, the department was not entitled to levy interest on duty under Section 11AB. The learned Counsel has contextually referred to the amendment made to Section 11AB on 11-5-2001. The Finance Act, 2001 substituted a new text for Section 11AB in the place of the erstwhile text. In the new te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intentional. It is pointed out that a Special Leave Petition filed by the party against the High Court's decision was allowed but, in the Civil Appeal, no interim stay was granted and, therefore, the decision of the Hon'ble High Court has to be followed as a precedent. The learned SDR has also claimed support from Commissioner of Trade Tax, Lucknow v. Kanhai Ram Thekedar - 2005 (185) E.L.T. 3 (S.C.) wherein, in the context of dealing with an assessment order issued under Section 8 of the U.P. Sales Tax Act, it was held that the liability to pay interest accrued automatically. Certain other decisions, wherein different aspects of Section 11AB of the Central Excise Act were considered, also have been cited by the SDR. The learned SDR has also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ful mis-statement/suppression of facts etc. are expressions conspicuously absent in these show-cause notices. There is no whisper of any intention to evade payment of duty, either. Therefore, it is not open to the Revenue to insist that the assessee should pay interest on duty under Section 11AB in respect of any amount of duty paid by them for, any part of the period of dispute. We have also found that the amended provisions of Section 11AB(1) are not applicable to this case 6. The decisions cited by the learned SDR are not on the point under consideration. Me ha?, heavily harped on the High Court's judgment. In that case, their Lordships were considering the provisions of Section 11AB(1) as amended with effect from 11-5-2001. The pre-ame ..... X X X X Extracts X X X X X X X X Extracts X X X X
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